BELSKI: Investors Start using Rally To see UpThe most interesting reasons for the S&W 500 rally that has longer over the past with 3 months without relief is what is definitely driving the idea.This is, of course, subject to a handful of debate, although we can a minimum of identify something that don't show up driving it.Is it any U.South. economic records? Probably not As the Citi A person.S. Fiscal Surprise Crawl is unfavorable. (It's arrived in recently available days, however it is fallen considerably throughout plenty of the rally.)Citi ResearchWhat about revenue expectations? Which doesn't appear to be possible either ( blank ) earnings expected values continue on a constant decline, cheap wildstar power leveling even while the market comes up.FactSetWhy are people today buying, well then?There are possible a wide variety of reasons. We think on the list of big kinds is probably the exclusive dividends rewarded ahead of the global financial cliff at the end of 2012 staying reinvested in 2013.BMO strategist Brian Belski develops some helpful information within his latest note: everyone is just using this move to play catch-up.The guy gets the impression from your partner's conversations along with clients that it is the case, he writes:A particular topic which comes up frequently in our prospect conversations is a desire to grow beta (and risk) in portfolios. From a perspective, dealers appear to be following wildstar power leveling the market not paying plenty of attention to fundamental principles, since many cash managers currently have underperformed over the past year or two and view "risk-on” style strategies for you to play catch-up when market traction persists.Might another intriguing example of the unnecessary optimism that seems to have described this rally.(Most strategists now expect any correction immediately.)The problem, in keeping with Belski, is that provide for managers will always be stuck while in the "risk-on/risk-off" mindset that's dominated the actual post-crisis investment surroundings.Belski, like several several other equity strategists, feels the market is transitioning suitable period of high-end stock market outperformance, in spite of the pullback which may be expected in the near term.According to Belski, "risk-on/risk-off" investments is dry.And it's happen to be dead for two years."From any purely quantitative perception," he / she writes, "fundamentally powered strategies happen to have been performing very well, compared with 'risk-on' variety strategies for much of the past 2 yrs."The chart less than basically demonstrates this investment strategies determined by valuation, success, and revenue quality happen to be working a lot better than those based on technical evaluation and movements.Obviously, we have been in an tremendously low-volatility environment.BMO Expenditure of money Strategy Group, FactSet, CompuStat, IBESWhether that carries on or requires sharp decline again is without a doubt, of course, an open question. Auto data risk turning up, but earnings anticipations are still diminishing.Meanwhile, unless investors believe the next a static correction to send the market industry back into any "risk-on/risk-off" frenzy in the order not seen in two years, it may make sense to start emphasizing the fundamentals even more.BELSKI: Investors Work with Rally To get Up